Ultimately, all the developments on ETH can now occur on these other blockchains. The ensuing races and battles over dominance on these chains will create lots of profitable trading opportunities.
Stablecoins
The “Curve Wars” are ongoing battles by different stablecoin protocols to increase yields on their particular stablecoin pool. They do this by purchasing CRV and using the governance rights to direct yield. Then, Convex is functioning as a DAO that owns a lot of CRV and can route yields to different tokens, which makes DAOs the next step in the Curve Wars.
There are also stablecoin-token pairs like UST-LUNA, FRAX-FXS, MIM-SPELL where the growth of the TVL for the stablecoin results in greater value of the associated stablecoin. Of course, there is associated risk here, but the idea is that the less protocols have to pay users to join the protocol, the greater a multiple of treasury the tokens are worth.
Metaverse
The idea that companies can access eyeballs at scale in the metaverse is drawing everyone in, which we expect to continue. There will be many speculators moving in, but more importantly, builders are already starting to figure out how to offer 3D design services. This will act as an accelerant and draw in more users and value to the entire ecosystem.
Investing in the right metaverse land or token will be important, but there will also be profitable opportunities in finding utilities that are metaverse implementation-agnostic.
P2E
The stablecoin narrative is confusing at first, because instinct classifies them as “a dollar is a dollar.” However, with the introduction (and explosion) of algorithmic stablecoins and the ongoing “Curve Wars,” the number of opportunities for the “replacement of money” and the surrounding competition to deliver massive returns is increasing.
Ever since Facebook’s rebrand to Meta, the world has been awash with metaverse-related media coverage. In the ensuing weeks, native tokens to some implementations were pumping over 400%. It’s SDM’s contention that this is a small sample of the FOMO that will guide every brand and company into the metaverse this year.
Axie Infinity was the first major player here prior to its recent hack, creating insane wealth that was passing from those with time to those with money.